SBA Lending

What Is SBA Lending?

• SBA = Small Business Administration

• Partners with lenders to offer small business loans

• Lower down payments & longer repayment terms

• Ideal for businesses that don’t qualify for traditional loans

Types of SBA Loans

• SBA 7(a):

  • Most common loan

  • Used for working capital, real estate, equipment, debt refinance

• SBA 504:

  • For fixed assets like land, buildings, heavy machinery

  • Ideal for expansion or facility purchase

• SBA Microloans:

  • Up to $50,000

  • Great for startups, inventory, equipment

Benefits of SBA Loans

• Lower interest rates

• Longer repayment terms (up to 25 years)

• Smaller down payments (often 10%)

• More flexible qualification requirements

• Available to newer businesses and those with limited collateral

 Eligibility Requirements

• For-profit business

• Operates in the U.S.

• Meets SBA size standards

• Owner has invested equity in the business

• Must have exhausted other financing options

 Common Uses for SBA Loans

• Working capital

• Real estate purchases or renovations

• Equipment and machinery

• Inventory

• Vehicles

• Business expansion

• Debt refinancing

 Tips for Getting Approved

• Maintain strong personal & business credit

• Prepare a professional business plan

• Keep financial statements up to date

• Show cash flow projections

• Work with an SBA-preferred lender

• Be patient — processing takes time